International Journal For Multidisciplinary Research

E-ISSN: 2582-2160     Impact Factor: 9.24

A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

Call for Paper Volume 7, Issue 1 (January-February 2025) Submit your research before last 3 days of February to publish your research paper in the issue of January-February.

Determinants of Corporate Tax Avoidance: The Role of Financial Distress, Profitability, and Capital Intensity in Emerging Markets

Author(s) Setiawan Dwi Sakti, Arum Kusumaningdyah Adiati
Country Indonesia
Abstract This study investigates the influence of financial distress, profitability, and capital intensity on tax avoidance among companies listed on the Egyptian stock market from 2020 to 2022. Utilizing a quantitative approach, the research analyzes secondary data from 36 firms that maintained profitability during the study period. Tax avoidance is measured using the Current Effective Tax Rate (CETR), while financial distress, profitability, and capital intensity are assessed through the Altman Z-score, Return on Assets (ROA), and capital intensity ratio, respectively. Multiple regression analysis reveals that profitability has a significant negative effect on tax avoidance, suggesting that highly profitable firms are less inclined toward aggressive tax planning. Conversely, financial distress and capital intensity exhibit no significant relationship with tax avoidance, underscoring the context-specific dynamics in an emerging market like Egypt. These findings contribute to the growing body of literature on corporate tax behavior by highlighting the unique determinants of tax avoidance in developing economies. Policymakers are encouraged to consider these insights when designing tax regulations that promote compliance while addressing economic disparities. Future research should expand on these results by incorporating broader datasets and exploring the role of corporate governance and institutional factors in shaping tax strategies
Keywords Tax Avoidance, Financial Distress, Profitability, Capital Intensity, Emerging Markets, Current Effective Tax Rate, Altman Z-score, Return on Assets, Egyptian Stock Market
Field Business Administration
Published In Volume 7, Issue 1, January-February 2025
Published On 2025-01-17
Cite This Determinants of Corporate Tax Avoidance: The Role of Financial Distress, Profitability, and Capital Intensity in Emerging Markets - Setiawan Dwi Sakti, Arum Kusumaningdyah Adiati - IJFMR Volume 7, Issue 1, January-February 2025. DOI 10.36948/ijfmr.2025.v07i01.34949
DOI https://doi.org/10.36948/ijfmr.2025.v07i01.34949
Short DOI https://doi.org/g82gtz

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